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Production planning optimization system

The system is designed to improve the efficiency of the procurement and distribution of raw materials.
Another goal of the project is to optimize plans to meet future production needs. The resulting solution is cost efficient and satisfies all the company’s needs
Case overview
The Company annually purchases 1.8 million tons of milk. The milk market is seasonal and in short supply. Our client needed a system that would help choose the optimal strategy for the procurement and distribution of raw materials between production sites
Client company
A food company, a well-known manufacturer of dairy products and other food products. The company has over 18 factories, 60 logistics centres and 12,000 employees
We offered a system that accounts for various factors like seasonality, existing obligations for the purchase of raw materials, production of finished products, the state of the warehouse of raw materials and finished products, etc. It provides an effective approach to procurement management that allows selecting the optimal behavior option and reducing business risks
The company's annual costs have been reduced by 1-1.5%
Labor and time costs for preparing production plans, analyzing information and preparing reports have been reduced
Methodological problems have been resolved. All sites use a single methodology for calculating the optimal procurement plan, the problem of data synchronization has been eliminated. As a result, the model more accurately reflects the realities of the business and offers better solutions
The speed of obtaining the calculated data has been significantly increased. In a few clicks, the input data is loaded from adjacent systems, the model is launched for calculation and reporting is generated. If necessary, you can point to correct the input data and re-calculate with the formation of the final reporting. The whole calculation process takes 10-15 minutes